Other states have prepared much more detailed legislation than California Government Code Section 16.5 and these proposed regulations. Why?

True, other states have developed more regulatory-intensive proposals to oversee the implementation of digital signature technology. However, the California secretary of state's office believes that over-regulation of an industry that has yet to fully evolve would only serve to stifle the natural market forces that are crucial to the thorough evolution of any emerging technology. With digital signatures, a sort of chicken or egg dilemma has developed.

Potential users and vendors of the technology are waiting for laws and regulations to authorize digital signatures, however, lawmakers have found it difficult to identify the regulatory needs for an industry that is still in its infancy. Consequently, many jurisdictions have sought to regulate any potential component of this technology which may eventually present a problem. The result of this over-burdensome regulatory approach has been continual delays in getting this important technology placed in use.

Rather than create a regulation ... more.

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